Land - Incorrect MCQs

What is a s146 notice for?

It is used as a notice to give the tenant before forfeiture can take place, for a breach of an obligation OTHER than non-payment of rent.

What should a S146 notice include?

• Specify the breach

• If capable of remedy, it to be remedied within a reasonable time; and

• If the landlord wises for compensation, it must request it.

What is S146(2) of the LPA 1925?

It allows the tenant to apply to court for relief. The court will grant or refuse it having regard to all the circumstances as it sees fit.

In relation to S146(2) of the LPA 1925, what happens if the Landlord has exercised its rights by applying for a court order?

The tenant must apply for relief before the landlord applies for the court order.

What is the process for forfeiture when the breach is of repair covenants?

This applies to any lease which is granted for 7 years with at least 3 years left to run, as well as the S146 notice, the landlord must inform the tenant of its right to serve a counter notice within 28 days. If the tenant does serve a counter notice, the landlord cannot proceed with forfeiture or claim damages without first obtaining the leave of court.

What are the formalities to vary a land contract?

Be in writing, signed by both parties and contain all the expressly agreed terms.

When will an implied legal easement be binding? What will it be binding as?

It will be binding as an overriding interest if it has been exercised within the last year.

What are the four unities of title? What do they apply to?

They apply when looking at joint tenancy.

• Unity of possession - No co-owner can be excluded from any part of the land.

• Unity of title - All co-owners must acquire their title from the same document.

• Unity of Interest - The interest held by each co-owner must be held for the same nature and duration. (For example, a lease must be held for the same time)

• Unity of time - Interest must vest at the same time (does not mean they have to sign at the same time or move in at the same time).

What are the rights of a lender in relation to mortgages?

• Debt action - often used in addition to other remedies where the sale proceeds do not cover the outstanding debt. It is a personal action against the borrower.

• Possession - takes possession of the mortgages property as precursor to the sale. Must be last resort in residential cases.

• Sale - proceeds used to cover debt, any outstanding will be given back to borrower.

• Receiver - function is to get an incomes from the land before sale and apply that to the outstanding debt.

• Foreclosure - rarely used in practise anymore. Allows a lender to take the mortgaged property in satisfaction of the debt.

Is a court order required for a lender to take possession of a mortgaged property?

No, but it is often used.

What does s36 of the Administration of Justice Act 1970 provide when lenders wish to take possession of a mortgaged property?

Where wholly or partly residential, it enables the court to adjourn possession proceedings or stay the execution of the possession order. In order to do so, it must appear that the borrower is likely to be able to pay any sums due within a reasonable period.

What is severance?

The process of converting an equitable interest held as joint tenancy into an interest as a tenancy in common.

If an individual joint tenant declares a mortgage over their beneficial interest in the house, what effect does it have on the joint tenancy?

It will sever the share so it will be held as tenants in common.

What is the time a Landlord must serve notice on missed payment of rent for an old lease or new lease covered by a AGA?

6 months.

When serving notice of severance, does it need to be read by the remaining joint tenants?

No - as long as it is validly served.

If an item is found on land and the owner cannot be located, who is the owner of the item?

The landowner if they have sufficient control over the item and an intention to exercise control ober the item in which it was found.

What is a form AP1 used for?

Changing a name of a register

What is the difference in the duty of disclosure for SCS and SCPC?

SCS - the seller should specifically disclose all burdens that are registered against the property or the individual for unregistered land.

SCPC - this is not necessary.

Under the SCPC, how is contractual compensation calculated when there has been a delay to completion?

Take the penalty interest rate (4% above the base rate) for each day of delay, calculated on the balance of the purchase price (less the deposit they are paying) divide by 365 to get the day rate, then multiply by the number of days late.